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Will the Doha Round Lead to Preference Erosion?

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Author Info
Amiti, Mary
Romalis, John

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Abstract

This paper assesses the effects of reducing tariffs under the Doha Round on market access for developing countries. It shows that for many developing countries, actual preferential access is less generous than it appears because of low product coverage or complex rules of origin. Thus lowering tariffs under the multilateral system is likely to lead to a net increase in market access for many developing countries, with gains in market access offsetting losses from preference erosion. Furthermore, comparing various tariff-cutting proposals, the research shows that the largest gains in market access are generated by higher tariff cuts in agriculture.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6372.

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Date of creation: Jun 2007
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Handle: RePEc:cpr:ceprdp:6372

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Related research
Keywords: developing countries market access preference erosion tariffs WTO

Other versions of this item:

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Devesh Roy & Aaditya Mattoo & Arvind Subramanian, 2002. "The Africa Growth and Opportunity Act and Its Rules of Origin: Generosity Undermined?," IMF Working Papers 02/158, International Monetary Fund. [Downloadable!]
    Other versions:
  2. Huiwen Lai & Daniel Trefler, 2002. "The Gains from Trade with Monopolistic Competition: Specification, Estimation, and Mis-Specification," NBER Working Papers 9169, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Yongzheng Yang, 2005. "Africa in the Doha Round: Dealing with Preference Erosion and Beyond," IMF Policy Discussion Papers 05/8, International Monetary Fund. [Downloadable!]
  4. Amiti, Mary & Konings, Jozef, 2005. "Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia," CEPR Discussion Papers 5104, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Carolyn L. Evans & James Harrigan, 2004. "Tight Clothing: How the MFA Affects Asian Apparel Exports," NBER Working Papers 10250, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Francois, Joseph & Martin, Will, 2003. "Formula Approaches for Market Access Negotiations," CEPR Discussion Papers 3720, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Baldwin, R E & Murray, Tracy, 1977. "MFN Tariff Reductions and Developing Country Trade Benefits under the GSP," Economic Journal, Royal Economic Society, vol. 87(345), pages 30-46, March. [Downloadable!] (restricted)
  8. DeVault, James, 1996. "Competitive Need Limits and the U.S. Generalized System of Preference," Contemporary Economic Policy, Oxford University Press, vol. 14(4), pages 58-66, October.
  9. Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference erosion and multilateral trade liberalization," Policy Research Working Paper Series 3730, The World Bank. [Downloadable!]
    Other versions:
  10. Kimberly A. Clausing, 2001. "Trade creation and trade diversion in the Canada - United States Free Trade Agreement," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 677-696, August. [Downloadable!] (restricted)
  11. Sebastien Jean & David Laborde & Will Martin, 2005. "Consequences of Alternative Formulas for Agricultural Tariff Cuts," Working Papers 2005-15, CEPII research center. [Downloadable!]
  12. Hans P. Lankes & Katerina Alexandraki, 2004. "The Impact of Preference Erosion on Middle-Income Developing Countries," IMF Working Papers 04/169, International Monetary Fund. [Downloadable!]
  13. Brenton, Paul & Ikezuki, Takako, 2004. "The initial and potential impact of preferential access to the U.S. market under the African Growth and Opportunity Act," Policy Research Working Paper Series 3262, The World Bank. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Erika Vianna Grossrieder, 2006. "Preference Erosion: The case of Bangladesh - A SUR-EC-AR Gravity Model of Trade," HEI Working Papers 18-2007, Economics Section, The Graduate Institute of International Studies, revised Aug 2007. [Downloadable!]
  2. Djankov, Simeon & Freund, Caroline & Pham, Cong S., 2006. "Trading on time," Policy Research Working Paper Series 3909, The World Bank. [Downloadable!]
  3. John Romalis, 2007. "Market Access, Openness and Growth," NBER Working Papers 13048, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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